diff --git a/bindings/python/src/lib.rs b/bindings/python/src/lib.rs
index 237998c5..858c9026 100644
--- a/bindings/python/src/lib.rs
+++ b/bindings/python/src/lib.rs
@@ -344,6 +344,49 @@ impl Engine {
         v.to_json_str()
     }
 
+    /// Registers a custom Python function as a Rego extension.
+    ///
+    /// This allows you to define functions in Python that can be called directly
+    /// from your Rego policies. The Python function will be called synchronously
+    /// during policy evaluation.
+    ///
+    /// Arguments passed from Rego are automatically converted to their corresponding
+    /// Python types. The return value is converted back to a Rego value.
+    ///
+    /// * `path`: Full path to the function as it will be used in Rego.
+    /// * `nargs`: The number of arguments the function expects.
+    /// * `extension`: The Python function to execute. Must accept exactly `nargs` arguments.
+    ///
+    /// Note: When the engine is cloned, extensions share the same Python callable reference
+    /// rather than being deep-copied. Stateful callables will share state across clones.
+    pub fn add_extension(&mut self, path: String, nargs: u8, extension: Py<PyAny>) -> Result<()> {
+        Python::with_gil(|py| {
+            if !extension.bind(py).is_callable() {
+                return Err(anyhow!("extension '{}' must be callable", path));
+            }
+            Ok(())
+        })?;
+
+        let func_ref = Arc::new(extension);
+        let path_clone = path.clone();
+
+        let extension_impl = move |args: Vec<Value>| -> Result<Value, anyhow::Error> {
+            Python::with_gil(|py| {
+                let py_args_vec: Result<Vec<PyObject>> =
+                    args.into_iter().map(|arg| to(arg, py)).collect();
+                let py_args = PyTuple::new(py, py_args_vec?)?;
+                let py_result = func_ref.call1(py, py_args).map_err(|e| {
+                    anyhow!("extension '{}' raises Python error: {}", path_clone, e)
+                })?;
+                let rego_result = from(&py_result.into_bound(py))?;
+                Ok(rego_result)
+            })
+        };
+
+        self.engine
+            .add_extension(path, nargs, Box::new(extension_impl))
+    }
+
     /// Enable code coverage
     ///
     /// * `enable`: Whether to enable coverage or not.
diff --git a/bindings/python/test.py b/bindings/python/test.py
index a1e20259..f1b56a72 100644
--- a/bindings/python/test.py
+++ b/bindings/python/test.py
@@ -1,6 +1,5 @@
 # Copyright (c) Microsoft Corporation.
 # Licensed under the MIT License.
-
 import regorus
 import sys
 
@@ -163,3 +162,228 @@ def run_host_await_example():
   print(vm.resume('{"tier":"gold"}'))
 
 run_host_await_example()
+
+def test_extension_execution():
+    rego = regorus.Engine()
+    rego.add_policy("demo",
+        """
+        package demo
+
+        result := greeting(a, b) if {
+          a := data.a
+          b := data.b
+        }
+        """)
+
+    def custom_function(arg1, arg2):
+        return f"{arg1}, {arg2}!"
+    rego.add_extension("greeting", 2, custom_function)
+
+    rego.add_data({"a": "Hello", "b": "World"})
+    result = rego.eval_rule("data.demo.result")
+    assert result == "Hello, World!", f"Unexpected result: {result}"
+
+test_extension_execution()
+
+def test_extension_wrong_arity():
+    rego = regorus.Engine()
+    rego.add_policy("demo",
+        """
+        package demo
+
+        result := greeting(a, b) if {
+          a := data.a
+          b := data.b
+        }
+        """)
+
+    def custom_function(arg1, arg2):
+        return f"{arg1}, {arg2}!"
+
+    rego.add_extension("greeting", 3, custom_function)
+    rego.add_data({"a": "Hello", "b": "World"})
+
+    try:
+        rego.eval_rule("data.demo.result")
+    except RuntimeError as ex:
+        assert "error: incorrect number of parameters supplied to extension" in str(ex) 
+    else:
+        assert False, "exception not thrown"
+
+test_extension_wrong_arity()
+
+def test_extension_raises_exception():
+    rego = regorus.Engine()
+    rego.add_policy("demo",
+        """
+        package demo
+
+        result := greeting(a, b) if {
+          a := data.a
+          b := data.b
+        }
+        """)
+
+    def custom_function(arg1, arg2):
+        raise RuntimeError("unknown error")
+
+    rego.add_extension("greeting", 2, custom_function)
+    rego.add_data({"a": "Hello", "b": "World"})
+
+    try:
+        rego.eval_rule("data.demo.result")
+    except RuntimeError as ex:
+        assert "error: extension 'greeting' raises Python error: RuntimeError: unknown error" in str(ex) 
+    else:
+        assert False, "exception not thrown"
+
+test_extension_raises_exception()
+
+
+def test_extension_zero_arg():
+    rego = regorus.Engine()
+    rego.add_policy("demo",
+        """
+        package demo
+
+        result := greeting()
+        """)
+
+    def custom_function():
+        return "Hello, World!"
+
+    rego.add_extension("greeting", 0, custom_function)
+    rego.add_data({"a": "Hello", "b": "World"})
+
+    result = rego.eval_rule("data.demo.result")
+    assert result == "Hello, World!", f"Unexpected result: {result}"
+
+test_extension_zero_arg()
+
+def test_extension_non_callable():
+    rego = regorus.Engine()
+    rego.add_policy("demo",
+        """
+        package demo
+
+        result := greeting()
+        """)
+
+    try:
+        rego.add_extension("greeting", 0, 123)
+    except RuntimeError as ex:
+        assert "extension 'greeting' must be callable" in str(ex)
+    else:
+        assert False, "exception not thrown"
+
+test_extension_non_callable()
+
+
+def test_extension_duplicate():
+    rego = regorus.Engine()
+    rego.add_policy("demo",
+        """
+        package demo
+
+        result := greeting()
+        """)
+
+    def custom_function1(arg1, arg2):
+        return f"{arg1}, {arg2}!"
+    def custom_function2(arg1, arg2):
+        return f"{arg1}, {arg2}!"
+
+    rego.add_extension("greeting", 0, custom_function1)
+
+    try:
+        rego.add_extension("greeting", 0, custom_function2)
+    except RuntimeError as ex:
+        assert "extension already added" in str(ex)
+    else:
+        assert False, "exception not thrown"
+
+test_extension_duplicate()
+
+
+def test_extension_types():
+    rego = regorus.Engine()
+    rego.add_policy("demo",
+        """
+        package demo
+
+        i := custom.triple(10)
+        f := custom.triple(2.5)
+        b1 := custom.negate(true)
+        b2 := custom.negate(false)
+
+        a := custom.first([true, null, 1])
+        b := custom.first([null, null, 1])
+        c := custom.first([null, null, null])
+
+        object := custom.modify_object({"a": 1, "b": 2})
+        list := custom.modify_list([3, 4])
+        set := custom.modify_set({5, 6})
+        """)
+
+    def triple(n):
+        return n*3
+
+    def negate(b):
+        return not b
+
+    def first(lst):
+        for i in lst:
+            if i is not None:
+                return i
+        return None
+
+    def modify_object(object):
+        assert isinstance(object, dict)
+        return {k: v*2 for k, v in object.items()}
+
+    def modify_list(lst):
+        assert isinstance(lst, list)
+        return [x*2 for x in lst]
+
+    def modify_set(st):
+        assert isinstance(st, set)
+        return {x*2 for x in st}
+
+    rego.add_extension("custom.triple", 1, triple)
+    rego.add_extension("custom.negate", 1, negate)
+    rego.add_extension("custom.first", 1, first)
+    rego.add_extension("custom.modify_object", 1, modify_object)
+    rego.add_extension("custom.modify_list", 1, modify_list)
+    rego.add_extension("custom.modify_set", 1, modify_set)
+
+    i = rego.eval_rule("data.demo.i")
+    assert i == 30, f"Unexpected result for 'i': {i}"
+
+    f = rego.eval_rule("data.demo.f")
+    assert f == 7.5, f"Unexpected result for 'f': {f}"
+
+    b1 = rego.eval_rule("data.demo.b1")
+    assert b1 == False, f"Unexpected result for 'b1': {b1}"
+
+    b2 = rego.eval_rule("data.demo.b2")
+    assert b2 == True, f"Unexpected result for 'b2': {b2}"
+
+    a = rego.eval_rule("data.demo.a")
+    assert a == True, f"Unexpected result for 'a': {a}"
+
+    b = rego.eval_rule("data.demo.b")
+    assert b == 1, f"Unexpected result for 'b': {b}"
+
+    c = rego.eval_rule("data.demo.c")
+    assert c is None, f"Unexpected result for 'c': {c}"
+
+    obj = rego.eval_rule("data.demo.object")
+    assert obj == {"a": 2, "b": 4}, f"Unexpected object: {obj}"
+
+    lst = rego.eval_rule("data.demo.list")
+    assert lst == [6, 8], f"Unexpected list: {lst}"
+
+    st = rego.eval_rule("data.demo.set")
+    assert st == {10, 12}, f"Unexpected set: {st}"
+
+test_extension_types()